Pag-IBIG hikes dividend rates for savings

MANILA, Philippines — State-run Home Development Mutual Fund (Pag-IBIG) has increased the dividend rates for both regular and voluntary savings after approving a record P31.79 billion in dividends for members last year.

Housing Secretary and Pag-IBIG chair Eduardo del Rosario said the agency adjusted the dividend rates for regular savings to 5.5 percent and for the voluntary program to six percent.

In 2021, Pag-IBIG dividend rates were pegged at 5.62 percent for regular and 6.12 percent for voluntary savings.

Del Rosario said the agency raised the dividend rates to pay the highest possible returns to members whose incomes were cut by the pandemic. He assured members that Pag-IBIG’s finances remain intact in spite of the decision to adjust the dividend rates.

“Giving higher returns is part of our efforts to give the best benefit to our members, especially as they face economic challenges due to the ongoing pandemic, [all the] while ensuring the fund’s sustainability and stability,” Del Rosario said.

Pag-IBIG CEO Acmad Rizaldy Moti also said that the approved dividends amount to around 92 percent of the housing fund’s all-time high P34.73 billion net income for 2021.

Under its charter, Pag-IBIG is mandated to allocate at least 70 percent of its annual profit for the dividend payout of its members.

“Pag-IBIG has always looked out for the well-being of our members. When we perform well, it’s our members who benefit the most,” Moti said.

Moti attributed the increase in dividends to the improving economic environment that expanded Pag-IBIG’s loan portfolio even during the pandemic. Last year Pag-IBIG also saw one million of its members return to its fold when they returned to work upon the lifting of mobility restrictions.

Savings made in Pag-IBIG went up by more than 32 percent to a record P63.67 billion in 2021 from P48.18 billion in 2020, even beating the pre-pandemic total of P50.38 billion in 2019.

Regular savings made up over 59 percent of the total at P37.71 billion, while voluntary savings through the Modified Pag-IBIG 2 almost doubled to P25.95 billion.